Blue Jet Healthcare files draft papers with Sebi; eyes up to Rs 2,100-cr via IPO

Pharmaceutical ingredients maker Blue Jet Healthcare has filed preliminary papers with capital markets regulator Sebi to raise as much as Rs 2,100 crore through an initial public offering (IPO).

The IPO is completely an offer-for-sale (OFS) through which the company’s promoters — Akshay Bansarilal Arora and Shiven Akshay Arora — will sell up to 21,683,178 equity shares, according to the draft red herring prospectus (DRHP). Merchant banking sources have pegged the IPO size between Rs 1,800 crore and Rs 2,100 crore. The Mumbai-based Blue Jet Healthcare, is a specialty pharmaceutical and healthcare ingredient and intermediate company, offering niche products targeted towards innovator pharmaceutical companies and multinational generic pharmaceutical companies.

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Its business model focuses on collaboration, development, and manufacturing of complex chemistry categories. Over the past five decades, the company has developed over 100 products with over 40 products commercialised. The company’s 76 per cent of income in FY22 came from Europe, followed by India (17.14 per cent), the US (4.18 per cent) and some other countries. Its revenue from operations grew by 37 per cent to Rs 683.47 crore for the financial year 2022, from Rs 498.93 crore for the financial year 2021.

The company’s profit after tax rose by 34 per cent to Rs 181.59 crore for the financial year 2022, from Rs 135.79 crore for the same period last year. The company is a net debt-free company as on June 30, 2022 and it operates three manufacturing facilities, in Shahad, Ambernath, and Mahad in Maharashtra as of March-end this year. Kotak Mahindra Capital Company Limited, ICICI Securities Limited, and J.P. Morgan India Private Limited are the books running lead managers to the issue. The equity shares are proposed to be listed on BSE and NSE.